Road projects worth Rs 25 lakh crore to be developed

07 Dec 2020 Editorial Team

According to the government, Rs 25 lakh crore worth of road projects will be developed as part of the Rs 100 lakh crore infrastructure building programme that was declared by Prime Minister Narendra Modi. These schemes comprise revamping the models of asset monetisation as well as establishing SPVs for the Rs 1 lakh crore worth Delhi-Mumbai Corridor Project. Roads minister Nitin Gadkari was quoted in a PTI report saying that last week that he has cleared two large highway projects worth Rs 65,000 crore including the Amritsar-Ajmer express highway project worth Rs 35,000 crore.

To attract a higher number of investments in the asset monetisation programme, a revision of the model has been undertaken in alignment with the department of disinvestment model which has allowed for the realistic price discovery of an asset. As per the Indian roads minister Nitin Gadkari, the facilitation of the infrastructure debt funds ensures their participation in the asset’s direct financing under monetisation.

Under the Bharatmala initiative, the SPV national highways logistics management company has been put in place for a total of 35 logistics parks. Manoj Kumar, a member of NHAI, acts as their chairman.

To help existing partners in the road and construction sector deal with financial and logistic woes stemming from the slowing down of the economy, they have been granted sizable financial relief packages, added the Minister.

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